On 19 April 2021, the Bank of England (BoE) and HM Treasury announced the joint creation of a Central Bank Digital Currency (CBDC) taskforce to coordinate the exploration of a potential UK CBDC.
The taskforce will:
- Coordinate exploration of the objectives, use cases, opportunities and risks of a potential UK CBDC.
- Guide evaluation of the design features a CBDC must display.
- Support a rigorous, coherent and comprehensive assessment of the overall case for a UK CBDC.
- Monitor international CBDC developments to ensure the UK remains at the forefront of global innovation.
The BoE is also creating:
- A CBDC Engagement Forum to engage senior stakeholders and gather strategic input on all non-technology aspects of CBDC. It will consider issues such as – but not limited to – ‘use cases’ for CBDC, functional needs of CBDC users, roles of public and private sectors in a CBDC system, financial & digital inclusion considerations, and data & privacy implications.
- A CBDC Technology Forum to engage stakeholders and gather input on all technology aspects of CBDC from a diverse cross-section of expertise and perspectives.
The BoE is also establishing a CBDC Unit. This new division of the BoE will lead its internal exploration around CBDC. It will also lead the BoE’s external engagement on CBDC, including with other UK and international authorities.
The Government and the BoE have not yet made a decision on whether to introduce a CBDC in the UK, and will engage with stakeholders on the benefits, risks and practicalities of doing so.